Previous update November 29th
Over the weekend we updated our approximation for the market to neutral and de-risked our accounts, but yesterday we traded $TNA on the long side, simply because possibility exists for our call to be wrong.
Yesterday our base case got some foundation from the sentiment. As we reported, by the close $TNA developed what clearly can be counted as five waves down, chart here (link) standard fibonacci retraces for wave 2 up are 96.75 and 97.28, but ought to excursiveness of bullish sentiment from traders, we can move that target to 98.49. Excepting TNA moves above 99.01 we maintain that a 3rd wave down is to develop.
For major support areas please refer to weekend update, retraces for wave 4, here (link), previous 1% and .886 at retrace here in gray, (link). Average of 135 minute Good for Entry at 87.65. Attached. Our solid buying range goes from 86.45 to 84.82.
Current update
Monthly retraces for $TNA are as following: .886 retrace 91.76, chart here (link) previous 1% at 87.15 as seen here (link), the alt micro count projects a bottom to 92.03 equivalent to 2.118 extension, standard is 1.764 at 92.78 as seen here (link), but given current action 2.118 seems more likely. Additionally 1% extension in the gray count -that represents our base count- chart here (link) is at 91.95, that’s too close to .886 support at 91.76, and even the market can stretch to 88.46 (link) being short under 91.76 might be extremely dangerous since we are looking for the bottom of wave iv of 3 of 5 not the end of Western civilization.
We have a solid buying range from 86.45 to 84.82 as discussed on November 29th, but on #RQLab we will accumulate $TNA at 91.95 and 88.46, since conservative target is at 102.
